Infrastructure Bonds & Income Tax Benefit in India

by Pooja Late so cut

Saving on income is very vital as it gives individuals the opportunity to make more money. The money can subsequently be used for a number of other purposes including re-investing for business, savings or other personal expenses. A lot of people have however missed out on opportunities to save from their income because they do not have knowledge about investment banking finance. There are a number of ways an individual can save on income including income tax benefit and infrastructure bonds in India.

Infrastructure bonds

Infrastructure bonds are India Government’s associated corporations issued bonds, which help individuals to save on their tax. Some of the corporations that have been licensed by the Indian government to issue infrastructure bonds in India include Infrastructure Development Finance Company (IDFC), Industrial Finance Corporation of India (IFCI) and Life Insurance Corporation (LIC). The infrastructure bonds have a number of benefits. One of this benefit is the fact that the maximum amount that can be deducted annually, is Rs 20,000, based on Section 80CCF. When an individual invests in infrastructure bonds, he can get between 10 percent and 30 percent tax bracket which gives the opportunity to save as much as Rs 6180. These savings can subsequently be used for a number of other things such as reinvestment, which would boost the profit of the individual or organization as well as savings.

Income tax benefits

Income tax entails the tax we pay on the income we make from our business or salaries. The tax is very important as it is a source of revenue generation for government, with which they carry out other developmental projects that will be of benefits to the tax payers. In order to encourage people to pay their tax, the governments in many countries, including India, put in place some tax benefits which tax payers can benefit from. The benefits are slightly different for male and female folks. For instance, women, whose net income is less than Rs. 1,90,000 do not have to pay income tax when they are not up to 65 years of age. For men however, the condition holds when their net income is less than Rs. 1,80,000. There are several other income tax benefits Indians can benefit from. The details can be gotten from individuals who are in the Investment banking finance sector. It is possible for investors to get a lot of benefits from tax payments, based on the Income Tax Act’s Section 80C. There is the opportunity to invest in a number of instruments including Tax Saving Fixed Deposits, National Savings Certificate and Public Provident Fund.

Conclusion

If you are looking forward to save on your expenditures on a monthly basis, then you should look towards infrastructure bonds and income tax benefits especially if you are working in India. This would grant you more capital to invest into your business or add to the amount you save. Investing in infrastructure bonds and other tax benefits options reduces the amount of income tax you have to pay to the Government of India.

Author’s Bio

Mark Long discusses different ways of income tax benefits such as infrastructure bonds India and others that can be confirmed from investment banking finance professionals.